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Re: None

Tuesday, 01/23/2018 11:44:51 AM

Tuesday, January 23, 2018 11:44:51 AM

Post# of 3433
I don't know that the regular producers can make money at $5/gram since not a single one is profitable at $7/gram. The only two that were profitable were Aphria and Organigram and they both had an avg selling price of over $8/gram in the quarter referenced in the investor presentation. Aphria is the lowest-cost producer and to break even, they would need to sell for at least $6.20/gram. I can see how everyone else would likely eventually be able to make money at $6.50-7/gram once they scale, but if regular retail price is on avg $7.75/gram, there's no way that the retailers are going to make $2+ profit per gram while the producers lose money, so I don't see $5/gram being close to feasible.